The forward P/E ratio uses consensus estimates for earnings over the next 12 months, providing a snapshot of how much investors are willing to pay for future earnings.
The current forward P/E ratio for the S&P 500 is 22.2x. The forward P/E for the remainder of sectors can be viewed in the chart.
The Forward P/E ratio is influenced by factors such as earnings growth projections, interest rates, and overall investor sentiment. It helps investors gauge the relative valuation of different market segments.
